China’s coal plant construction reached a significant peak last year, the highest in nearly a decade, despite President Xi Jinping’s vow that carbon emissions would hit their peak before 2030. This information comes from a recent report by the Centre for Research on Energy and Clean Air (Crea) and Global Energy Monitor (GEM).
According to their findings, while China added a record 356 gigawatts (GW) of wind and solar energy in 2024, it also initiated the construction of coal power plants with a combined capacity of 94.5 GW, marking the highest levels since 2015. In addition, existing projects that had been on hold were restarted, adding another 3.3 GW in capacity. This indicates that coal remains a significant part of China’s energy landscape, even as the country pushes for more renewable sources.
The report’s lead authors, Qi Qin from Crea and Christine Shearer from GEM, highlighted that rather than entirely replacing coal, clean energy projects are merely supplementing an already strong dependence on fossil fuels. They warned that the simultaneous growth of coal and renewable energy could jeopardize China’s shift towards cleaner energy.
China is known as the world’s largest emitter of greenhouse gases, contributing about 30% of the global total. Despite this, the country is rapidly advancing in renewable energy development. The increase in wind and solar energy capacity last year was almost equal to what the United States has installed in total. President Xi has proclaimed that China will achieve peak carbon dioxide emissions by 2030 and aims for net-zero emissions by 2060.
A senior Chinese official pointed out that the nation has been actively responding to climate change and is committed to green development. They noted that the intensity of carbon emissions is decreasing while the share of non-fossil fuels in the country’s energy mix is steadily rising.
However, the report by Crea and GEM expressed concerns that structural challenges within China’s power generation sector might hinder the transition to renewable energy. The findings showed that electricity buyers are often locked into long-term purchasing agreements for coal, which disincentivizes the shift to cleaner options. Additionally, coal mining companies are backing about 75% of the newly approved coal power projects, even in situations where market conditions would not support such expansions.
Analysts emphasized that the competition between coal and renewable resources is intensifying within China’s power system. In late 2024, fossil fuel generation remained high, even as solar and wind resources saw decreased usage.
Some analysts suggest that China’s fragmented energy market may also be a factor behind the ongoing construction of coal plants. Different regions are building their own coal facilities to accommodate local energy demands, which could lead to excess capacity that would be unnecessary in a more centralized energy market.
Coal plants often have different economic incentives compared to renewable sources, as they can receive payments for being available to provide energy to the grid, especially when renewable production fluctuates. Experts are concerned that adding more coal generation could lead to underutilization of existing coal-fired power stations.
Overall, China’s increasing reliance on coal power during a critical transition period poses significant challenges to the country’s environmental goals and highlights the complexities of balancing energy demands with sustainable practices.